Question 1

In terms of market capitalization,Apple is the biggest company in the world.

Accepted Answer

A) True 
 B)False

Question 2

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The collection of investments you select to meet your investment goals is called your [portfolio | allocation].

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.

Question 3

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-An IPO is be sold in the [primary | secondary] market many times.

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.

Question 4

The federal government regulates securities markets through the

Accepted Answer

A)   Department of Commerce.
B)   Federal Reserve System.
C)   National Association of Securities Dealers.
D)   Securities and Exchange Commission.
E)   Federal Securities Agency.

Question 5

The most popular average/index covering stocks listed on the New York Stock Exchange is the New York Stock Exchange Index.

Accepted Answer

A) True 
 B)False

Question 6

____ is a portfolio characteristic which leads to reduced risk with good return.

Accepted Answer

A)   Maturity
B)   Price-earnings ratio
C)   Diversification
D)   Stratification
E)   Duration

Question 7

Trading on margin can magnify losses or profits.

Accepted Answer

A) True 
 B)False

Question 8

Discount brokers will

Accepted Answer

A)   execute orders.
B)   give advice.
C)   watch portfolios.
D)   do all of these.
E)   do none of these.

Question 9

Which of the following is least likely to be an investment objective?

Accepted Answer

A)   enhance current income
B)   save for a major purchase
C)   pay monthly bills
D)   accumulate funds for retirement
E)   seek shelter from taxes

Question 10

Stockbrokerage firms often do industry analysis.

Accepted Answer

A) True 
 B)False

Question 11

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-ABC stock is [up 14.1% | down 27%] since the beginning of the year.

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.

Question 12

Listed securities are traded on organized exchanges.

Accepted Answer

A) True 
 B)False

Question 13

On-line trading is the only valuable investment service available through the Internet.

Accepted Answer

A) True 
 B)False

Question 14

A retail stockbroker buys and sells securities on behalf of clients.

Accepted Answer

A) True 
 B)False

Question 15

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The majority of the securities laws were enacted [before | after] 1930.

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.

Question 16

During a bear market,security prices generally

Accepted Answer

A)   hold value
B)   rapidly increase in value
C)   remain neutral
D)   decline in value
E)   consolidate in value

Question 17

You have been offered an opportunity to buy shares of a diversified collection of securities.You will be investing in

Accepted Answer

A)   bonds.
B)   common stock.
C)   mutual funds.
D)   real estate.
E)   stock opt ions.

Question 18

The margin required on the purchase of common stock is currently set at

Accepted Answer

A)   30%.
B)   40%.
C)   50%.
D)   60%.
E)   70%.

Question 19

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-You are going to buy stock on margin.You will be required to put up a minimum of [50 | 60] percent of the money needed to make the purchase.

Accepted Answer

A)  for the first item
B)  for the second item
C)  if neither item will correctly complete the statement.

Question 20

Unlisted securities are traded on the

Accepted Answer

A)   SEC market.
B)   SIPC.
C)   OTC market.
D)   AMEX.
E)   NYSE.

Exam 11: Investment Planning

In terms of market capitalization,Apple is the biggest company in the world.

Correct AnswerverifiedShow Answer

Listed securities are traded on organized exchanges.

Correct AnswerverifiedShow Answer

On-line trading is the only valuable investment service available through the Internet.

Correct AnswerverifiedShow Answer

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -An IPO is be sold in the [primary | secondary] market many times.

Correct AnswerverifiedShow Answer

The federal government regulates securities markets through the

Correct AnswerverifiedShow Answer

You have been offered an opportunity to buy shares of a diversified collection of securities.You will be investing in

Correct AnswerverifiedShow Answer

Which of the following is least likely to be an investment objective?

Correct AnswerverifiedShow Answer

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The majority of the securities laws were enacted [before | after] 1930.

Correct AnswerverifiedShow Answer

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -You are going to buy stock on margin.You will be required to put up a minimum of [50 | 60] percent of the money needed to make the purchase.

Correct AnswerverifiedShow Answer

Stockbrokerage firms often do industry analysis.

Correct AnswerverifiedShow Answer

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -ABC stock is [up 14.1% | down 27%] since the beginning of the year.

Correct AnswerverifiedShow Answer

A retail stockbroker buys and sells securities on behalf of clients.

Correct AnswerverifiedShow Answer

Discount brokers will

Correct AnswerverifiedShow Answer

____ is a portfolio characteristic which leads to reduced risk with good return.

Correct AnswerverifiedShow Answer

Unlisted securities are traded on the

Correct AnswerverifiedShow Answer

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The collection of investments you select to meet your investment goals is called your [portfolio | allocation].

Correct AnswerverifiedShow Answer

The most popular average/index covering stocks listed on the New York Stock Exchange is the New York Stock Exchange Index.

Correct AnswerverifiedShow Answer

Trading on margin can magnify losses or profits.

Correct AnswerverifiedShow Answer

During a bear market,security prices generally

Correct AnswerverifiedShow Answer

The margin required on the purchase of common stock is currently set at

Correct AnswerverifiedShow Answer

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